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Rental Price Index - July 2022
Rents back at an all-time high1 September 2022
After cooling off for a couple of months, rents took off once again in July, with the national median weekly rent back at a record-high $580 according to Trade Me’s latest Rental Price Index.
Trade Me Property Sales Director Gavin Lloyd said after falling for two months in row in May and June, the national median rent increased by 2 per cent month-on-month in July to reach $580 per week. “This will be tough news for renters, who will have no doubt enjoyed a promising couple of months of price relief we saw prior to July.”
Looking around the country, Mr Lloyd said the largest price increase was seen in the Nelson/Tasman region, where the median weekly rent jumped by 6 per cent month-on-month. “Median weekly rent increases in the Otago (up 4%) and Marlborough (up 3%) regions were not far behind.
“The Canterbury region had a stand out month in July, with the median weekly rent reaching $500 for the first time ever.” Mr Lloyd said Marlborough also saw a record-breaking median weekly rent last month ($520).
However, Mr Lloyd said not every region saw its rent go up last month. “The Taranaki (-2%), Southland (-1%) and Hawke’s Bay (-1%) regions all saw a drop in median weekly rent in July when compared with the month prior.”
Looking back to last year, Mr Lloyd said July’s national median weekly rent marked a 6 per cent jump when compared with the same month in 2021.
Supply spikes in the main centres
When compared with July 2021, Mr Lloyd said the number of rental listings across the country jumped by 13 per cent last month. “Rental market supply has remained strong for the past few months, with a couple of spots around the country seeing massive year-on-year increases consistently.
“Wellington continued to lead the charge for the third month in a row in July, seeing the biggest jump in the country with the number of rentals in the region up 49 per cent year-on-year.”
Mr Lloyd said the Northland (up 25%) and Marlborough (up 23%) regions also saw supply skyrocket in July. “On the other hand, Otago saw a whopping 29 per cent drop in supply, while the Nelson (-4%) and Canterbury (-2%) regions also both saw supply fall.”
|Region||Supply % Change||Demand % Change|
|Bay of Plenty||Bay of Plenty||+21%||+21%||+20%||+20%|
|Hawke's Bay||Hawke's Bay||+15%||+15%||-6%||-6%|
|Otago||Otago||-29%||-29%||- 10%||- 10%|
Please note the Gisborne, Marlborough and West Coast regions did not see enough listings calculate percentage supply changes.
Demand for rentals dropped when compared with the previous year, falling 5 per cent. “The biggest drops in demand were seen in Nelson/Tasman (down 34%), Taranaki (down 13%) and Otago (down 10%).”
Looking ahead, Mr Lloyd said the market will likely see a flurry of activity in the next few months as we enter the warmer part of the year. “It will be interesting to see what impact the seasonal rush will have on the market when we are already seeing supply and prices running hot during this typically quieter period.”
Auckland rents stagnant at $600
The Auckland region’s median weekly rent remained at $600 for the fourth row in the month in July. This marked an increase of 1 per cent year-on-year.
“When compared with the region’s record-high median weekly rent first recorded in January, rents in the Auckland region had softened slightly with a drop of $10 per week.”
Mr Lloyd said the most expensive Auckland districts in July were North Shore City ($650), Rodney ($650), and Papakura ($620). “In the Auckland City district, the median weekly rent was $580 last month.
“The most popular rental listing in the Auckland region last month was a three-bedroom home on Marendellas Drive in Manukau City.” Mr Lloyd said the property had a weekly rent of $530 and received 373 watchlists in its first seven days onsite.
Wellington rents up 3%
In the Wellington region, the median weekly rent rose 3 per cent year-on-year to reach $610 in July. “When compared with the prior month, this marked a jump of 2 per cent.”
The highest median weekly rent in the region was seen in Porirua ($690), followed by Lower Hutt ($630) and Kāpiti Coast ($620). “The Wellington City district saw a median weekly rent of $600 in July.
“Last month's most popular listing in the Wellington region was a two-bedroom house on Home Street, Taita, in Mount Victoria. The $500-a-week property was watchlisted 232 times in its first seven days onsite.”